Summary: The paper studies joint decision-making issues of shelf space allocation and inventory control for items with shelf-space-dependent demand rates. Two joint decision-making models are developed for two different situations: each item replenished separately and multiple items replenished jointly, respectively. The properties of the optimal solutions of the proposed models are analyzed. A traversal solution and two approximate algorithms are presented to solve the joint replenishment model. Numerical simulations show that: (1) the outcome of the improved approximate algorithm almost equals to that of traversal algorithm and the approximate algorithm can achieve near-optimal solutions through easily implemented algorithms in reasonable timescales. (2) The joint replenishment model leads to rather different replenishment policy and shelf allocation and superior profit performance, compared with the individual replenishment model. (3) The present shelf space allocation policy appears to outperform well-known rules of thumb.